UNIVERSITY OF MUMBAI

MAHATMA EDUCATION SOCIETYS PILLAIS COLLEGE OF ARTS, COMMERCE & SCIENCE NEW PANVEL

ACADEMIC YEAR 2011-2012

PROJECT: REEBOK MARKETING
SUBMITTED BY: CLASS T.Y.B.COM (A)

NAME: CHETAN LAHOTI ROLLNO: 3824

DATE OF SUBMISSION: 25/7/2011

SUBMITTED BY: CHETAN LAHOTI

SUBMITTED TO: SEEMA SOMANI

Declaration:I Mr. Chetan Lahoti Student Of T.Y.BCOM Pillais college of Arts, Commerce & Science New Panvel, Navi Mumbai Here By Declare That: I HAVE COMPLETED THE PRESENT ON MY OWN INFORMATION PROVIDED. THE REGARDING PROJECT IS TRUE & ORIGINAL.

ACKNOWLEDGEMENT:

THE COMPLETION OF PROJECT INVOLVES CONTRIBUTION OF TIME & EFFORTS OF MANY PEOPLE. I WOULD LIKE TO ACKNOWLEDGE THEIR HELP INDIVIDUALLY BY EXPRESSING OUR HEART GRATITUDE TO ALL OF THEM. I WOULD LIKE TO THANKS MRS. SEEMA SOMANI FOR GIVING HER VALUABLE GUIDANCE, TIPS & HELPING US THROUGHOUT THE PROJECTS. I THANK TO ALL THOSE PERSONS WHO HELPED US DIRECTLY OR INDIRECTLY FOR THE SUCCESSFUL COMPLETION OF PROJECT.

Project Report On Comprehensive Marketing Analysis Of:-

INDEX
Sr. No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Particulars Introduction Place and date of establishment Type of customer Objectives of the study Organization structure Advertising and marketing SWOT analysis Promotion No. of employees Product image Major Findings Layout and display Sales pattern Suggestion Conclusion

Name Of The Organization:-

INTRODUCTION
The entire population of the world wears Shoes. Once the concept of

wearing a pair of shoes was to protect the feet, but as time passed, it became style. A lifestyle is the Persons pattern of living in the world as expressed in activities, interests and opinions. Lifestyle portrays the whole person, interaction with his or her environment. A marketer has been searching for relationships between their products and lifestyle groups. In an era of style, Reebok has created a niche for itself among the young and old generation. A m u l t i n a t i o n a l c o m p a n y t h a t h a s b e c o m e a p a r t of p e o p l e s lifestyle around the world. In the case of the Indian population, it has much interaction among the young generation. Reebok, the leader of sports accessories in the world is well-known name in every household. It is one of the first companies in the world to make shoes for special purposes. Reebok is the brand that fits you on and off the field. Shop Reebok footwear, apparel, and other sports related products. Reebok came into India in the year 1995. In 2008, the Reebok segment was impacted by the deteriorating economic environment in key markets and ongoing efforts to improve the

positioning of the Reebok brand. Sales and profitability both developed below Managements initial expectations. Reebok has an extensive distribution network, reaches out to its target customer through over 105 exclusive Reebok stores, 100 shop in shop outlets and 2500 dealer outlets. Currently Reebok is a market leader in its segment with a total of 47% market share, with footwear contributing 55% and apparel contributing 45% share in turnover. Reebok mission is to inspire people to achieve their personal fitness goals by providing global expertise in design, styling and knowhow. Reebok name comes from Africa, the original Reebok logo shows the Union Jack, representing the brand's beginnings in Bolton, England in 1895.In 1986, Reebok introduced a second icon, known as the vector. This icon was introduced to represent a new era of "performance" product. The design comes from cues on the product - known as the "side stripe - cross check". In 1996, Reebok made minor change on their side stripe cross check. In 1998, Reebok removed their logotype and used only cross check which was appearing on Reebok products very aesthetic. In 2000, Reebok removed their logo and used only logotype. In 2002, logotype was changed and became more modern. In 2004, logotype was removed and cross check came back. To achieve a greater connection to the youth market, in 2001 Reebok introduced a new tier of product known as Rbk. The success of this branding influenced Reebok to look at its overall branding scheme and determine that the future of the brand would best be represented by this new logo. Rbk was designed by Group. At the 50th anniversary of the brand name in 2008, Reebok returned its brand identity from Rbk to Reebok. While Rbk captured a moment in time for the brand, Reebok is timeless and

reflects the company's heritage. The new design entails a new font that is modern, yet simple, and incorporates the face of the brand.

PLACE & DATE OF ESTABLISHMENT:-

Rbk Store, Aspire Paradise, Plot No. 227, Mtnl Road, Rupali Talkies, Panvel - 410206 Mumbai, Mumbai 022-27466759 & IT ESTABLISHED ON 24-9-2004

TYPES OF CUSTOMERS

customer

may

be

defined

as

different age

set

of

persons tastes,

who may be differentiated according to

groups,

choices and preferences, and buying power. There may be different sets of customers. According to their age groups the choices, tastes and preferences may differ in their approach. For example, when we talk about a teenage girl and

a cricketer then their choices will be different in approach d e p e n d i n g u p o n t h e i r a g e g r o u p a n d t h e w a y t h e y ar e l i v i n g their lives. Humans are customers to the Industries. In the case

o f Reebok a person who is willing to buy or wear a pair of Reebok shoes is a customer. Customers are increasingly expecting higher quality and service and also somecustomization.T h e y c a n o b t a i n e x t e n s i v e pr o d u c t i n f or m a t i o n f r o m t h e I n t e r n e t a n d other sources, permitting them to shop more intelligently. These stores had high class, middle class people and here mostly goods purchased by young generation. It also includes those people who believes in

standard quality and believes in brand. These people only purchase goods from these stores.

Objectives of the study: To find out the awareness regarding Reebok shoes.

To find out the most important source through which customers came to know about Reebok shoes.

To find out the factors influencing the purchase of Reebok shoes.

To find out the factors influencing the purchase of branded shoes.

ORGANISATION STRUCTURE MANAGER (Top level management)

SALES REPRESENTATIVES (Middle Level Management)

SECURITY GUARD (Low Level Management)

ADVERTISING & MARKETING

Advertising is omnipresent. It is everywhere. Advertising is a powerful tool of business and marketing. But some others say that advertising manipulates our needs and makes us buy things, which we do not want. Advertising is considered so powerful that doing business today without advertising is like looking at a girl in a dark room. Advertisers spend huge amount of money on advertising. Reebok, the U.S. Company, has been advertising and marketing since its inception. Reebok undergoes a tremendous

amount of advertising through television, video, newspapersa n d m a g a z i n e s e t c . T h u s , t h e c o m p a n y i t s e l f pr o m o t e s t h e v a r i o u s o u t l e t s . R e e b o k u s e s m a n y c r i c k e t e r s l i k e R a h u l Dravid, Yuvraj Singh, and Dinesh Mongia for its advertisements in TV, Newspapers, magazines, and video etc. Through such an young advertising strategy, Reebok has been able to influence the generation in a big way. Recently, Reebok has undergone a major advertising campaign to launch its Iverson Collection. For promoting this campaign, company has signed Dinesh Mongia, the new cricket star who has gained tremendous amount of popularity in such a short span of his career.

In the case of the retail outlet T h e r e t a i l o u t l e t i t s e l f a l s o d o e s a d v e r t i s i n g w h i c h i s mainly d o n e t h r o u g h h o a r d i n g s , b o a r d s a n d Local newspapers.

MARKETING MIX
Marketers use numerous tools to elicit desired responses from their target markets. These tools constitute a Marketing mix.

Marketing mix

I t i s t h e s e t o r m a r k e t i n g t o o l s t h a t f i r m uses to pursue its marketing objectives in the target market. M c C a r t h y c l a s s i f i e d t h e s e t o o l s i n t o f o u r br o a d gr o u p s that he called the four Ps of marketing: product, price, place, and promotion. Marketing m i x d e c i s i o n s m u s t b e m a d e f o r i nf l u e n c i n g the trade channels as well as the final consumers. This shows the company preparing an offering mix of products, services, and prices, and utilizing a promotion mix of sales promotion, advertising, sales force, public relations, d i r e c t m a i l , t e l e m a r k e t i n g , a n d I n t e r n e t t o r e a c h t h e t r a d e channels and the targets customers.

The particular marketing variables under each P are shown below:-

The Four P components of the Market Mix Marketing mix

Product
Product, Variety, Quality, Design, Features, Brand Name,

Packaging, Sizes, Services, Target, Market.

Price

List Price, Discounts, Allowances, Payment Period, Credit Terms.

Promotion

Sales, Promotion, Advertising, Sales Force.

Place

Channels, Coverage, Assortments, Locations, Inventory, Transport.

SWOT ANALYSIS Strength

Reeboks name has excellent branding and a high quality image. People buy Reebok because its quality and reliability. Consumers know they will get satisfaction by wearing this brand. D e a l e r s a n d s a l e s m a n w h o s e l l R e e b o k s p r o d u c t a r e knowledgeable and well trained in selling Teenagers and the young generation are crazy about this product.

Reebok has its factory situated in Bijwasan, N.Delhi. This h e l p s t o c u t d o w n t h e c o s t o f p r o d u c t i o n , w h i c h i n t u r n reduces the price of the products, as the company doesnt have to import their products from outside.

Weaknesses
It faces a lot of competition like Nike, Power, and Phoenix etc. In some places it has not been able to compete with the I n d i a n s p o r t s s h o e m a n u f a c t u r e s b e c a u s e o f i t s h i g h prices. I t s h i g h p r i c e s h a v e l i m i t e d t h e i r r a n g e o f c u s t o m e r s . R e e b o k c a t e r s t o o n l y t h e h i g h e r m i d d l e c l a s s a n d t o p class of the society.

Opportunity
T h e f i c k l e a n d d e s i g n . T h i s i s b e c a u s e o f t h e c o n s c i o u s
nature of the target market of young teenagers adults who like to buy the latest fashions. M o v i n g f r o m t h e s p e c i a l i s t s p o r t s s h o e m a r k e t t o t h e and adult market. New and innovative sports shoe designs. young and

Threat
T h e b i g g e s t t h r e a t i s t h e p o p u l ar i t y o f o t h er manufactures.
For example: sponsorship for cricket Companies like Nike have given major and other sports. Nike has also

boughtt h e t e l e v i s i o n r i g h t s f o r m a n y c r i c k e t t o ur n a m e n t s o v e r t h e y ears. Reebok has to increase its popularity on a regular basis.

PROMOTION
Promotion includes all the activities the company undertakes to communicate and promote its products to the target market. Atlas has to hire, train, and motivates p e o p l e . I t h a s t o s e t u p c o m m u n i c a t i o n a n d pr o m o t i o n p r o gr a m s c o n s i s t i n g o f a d v e r t i s i n g , s a l e s p r o m o t i o n , p u b l i c relations, and direct and on-line marketing. T h e p r i n c i p a l o b j e c t i v e of t h e o u t l e t i s s a l e p r o m o t i o n . Salespromotion objectives are derived from broader promotiono b j e c t i v e s , w h i c h a r e d e r i v e d f r o m m o r e b a s i c m a r k e t i n g objectives developed for the product. The specific objectives for sales promotion vary with the target market. For consumers, objectives include encouraging purchase of larger-size units, building trial among nonusers, and attracting switchers away from competitors brands. For retailers, objectives include persuading retailers to carry new items and higher levels of inventory, encouraging off-season buying,

encouraging stocking of related items, offsetting competitive promotions, building brand loyalty, and gaining entry into new retail outlets. For the sales force, objectives include encouraging support of a new product or model, encouraging more prospecting and stimulating off-season sales. Over the n e x t f e w y e a r s , t hi s w a s e n h a n c e d b y t h e h e a v y f u n d s Nike was prepared to invest. For example, in 1995 Nike invested almost US$1 billion in sports marketing compared with Reeboks spending at around US$400 million. This investment i n s p o r t s m ar k e t i n g w a s much higher than previous sums.

NO. OF EMPLOYEES
Employees have an important value in any form of business, as they are the ones who make a valuable contribution to upgrade the sales turnover for any organization. I t i s h a r d t o b e l i e v e t h a t a n A m e r i c a n Company,whichhas a n u m b e r o f o u t l e t s a r o u n d t h e w o r l d , h a s o n l y s i x employees in this outlet who are able to m a n a g e e v e r y t h i n g efficiently. Among these six employees one is the manager - Mr. Navneet, and three are sales representatives - Mr. Dinesh, Mr. Sanjeev and Mr. Vishal. There is also one cashier and one s e c u r i t y g u a r d . T h e s a l e s r e p r e s e n t a t i v e s ar e o f m i d d l e a g e , w h i c h h a n d l e t h e c u s t o m e r s e r v i c e f o r t h e c o n s u m e r s . O n e more person has been recently recruited to increase efficiency in sales.

PRODUCT

LINE,

PRODUCT

AND

PRODUCTS IMAGE
Reebok is known for its product. As Reeboks products fall under specialty goods, it is important to know about specialty goods.

Specialty goods
These are goods with unique characteristics or brand identification for which a sufficient number of buyers is willing to make a special purchasing effort. Examples include cars, stereo components, photographic equipment, and mens suits. A Mercedes is a specialty good because interested buyers will travel far to buy one.

Specialty goods or not involve Dealers locations. do not

making comparisons; need convenient their

buyers invest time only to reach dealers carrying the wanted products. locations; however, they must let prospective buyers know The product line of a Reebok retail outlet g e n e r a l l y consists of sports accessories. The product line is divided into four sections:

1 ) Shoes
Reeboks specialty is their shoes. They vary from shoes for e v e r d a y u s e t o p r o f e s s i o n a l f o o t w e a r . T h e o u t l e t h a s around 4000 different types of shoes.Theoutletalsosellsf l o a t e r s a n d s a n d a l s w h i c h h a v e g a i n e d a t r e m e n d o u s amount of popularity among the youth.

2) Apparels
These include T-Shirts & shirts, track suits, shorts, socks& caps which a quiet popular among teenagers, sportsmen and professionals.

3) Sports Equipment
Sport equipment includes like Cricket bats & balls, Tennis balls and gymnastic equipment.

Major Findings: Males are the main customers of Reebok as compared to female.

Youngsters are the prime customer of Reebok. Customer having annual income 2 to 5 lakhs are the main target Market. customer as

There are more occasional compared to regular.

Customers are attracted by signage (reduced price,s ales promotion etc.)

Customers are more concern about brand image and price when buying from Reebok. Most of the customers believe that Puma can be a substitute of Reebok.

Moreover, in terms of genders response it was found that women were more influenced by signages as compared to men in making their purchase decisions.

Non-working women were the ones who were much influenced by signages. The degree of attractiveness of different elements in decreasing order is Display>Store Front>Lighting>Interior Design>Music>Color

LAYOUT AND DISPLAY

Layout and display are among the most important factors of sales promotional activities. It is done to attract and catch the eyes of the people about the kind of products and variety of products in which the outlet engages. Layout includes the interior display of goods. On the other hand, display or window dressing is the exterior show up of the outlet. T h e m o m e n t w e e n t e r t h i s o u t l e t a l l w e t h i n k a b o u t i s SPORTS. There is a huge display board at the entrance, which is very colorful and attractive. The customer/visitor is so stunned by seeing the display of

the

product

that

they

hardly

consult

the

sales

executives.T h e o u t l e t a d o p t s t h e p o w e r f u l m o d e o f v i s u a l p r e s e n t a t i o n rather than scripts. Visual presentation is much powerful than any printed material. Shoes are kept on attractive racks so that the customer can touch, feel and try out the shoes. There are three or four mannequins, which are dressed attractively with apparels made by Reebok. Shirts and shorts are also on racks and there is also a try room where the customer tries out the garments. Thus the customer can be fully satisfied by trying out everything which he buys from the showrooms.

SALES ACCOUNTS, CREDIT SALES

CASH

SALESAND

In this Reebok outlet, the cash book is a self record and all the sales proceeds are entered into the cash book. The audit checks these entries of accounts at the end of every financial year. No discount is given to the customers as Reebok has fixed prices. This outlet also does not carry out credit sales. Reebok gives discount as per schemes allotted.

SUGGESTION
There are still efforts are needed to make people aware about Reebok shoes.

Reebok Company must provide after sale service to their customers.

Companies shall introduce or increase the range of their product in respect of price so that a lower middle class people may also afford to have Reebok shoes.

CONCLUSION
As every company or brand is not developed in a day, Reebok has also gone through tough phases in its growth. Despite of tough competition faced from Nike and adidas, it has developed its known brand image .Reebok is not restricted to one particular country but has spread its arms throughout the world. Reebok has developed its own niche market.

Thus we can say that Reebok has maintained its position in the world due to its customer loyalty and meeting to its consumer requirement With its slogan suggesting I AM WHAT I AM it has proved to the world that it has not cared for anyone other than its customers. Thus we can say that Reebok has potential to become one of the most prestigious brands in the whole world.